Google outlines how EU could add over $1 trillion to its GDP with AI

Google has launched an ‘AI Opportunity Agenda’ which gives recommendations for how European governments can harness AI to drastically boost their economic output.

Research by Implement Consulting Group, commissioned by the search giant, suggests that AI can boost the continent’s economic growth, competitiveness and productivity.

The report estimates that generative AI “could add €1.2-1.4 trillion ($1.3- $1.6 trillion) to the EU’s GDP in 10 years – the equivalent to an annual growth rate of 8%.”

This comes after former Italian Prime Minister and renowned economist, Mario Draghi, published a paper detailing how Europe’s competitiveness has nosedived over the past few decades, with the EU’s share of global GBP having shrunk from over a quarter in 1980 to just 17% today.

US productivity surpassed the EU’s by 20% in 2022. Draghi said, “with the world on the cusp of an AI revolution, Europe cannot afford to remain stuck in the ‘middle technologies and industries’ of the previous century.”

The President of Google Europe, Middle East, and Africa, Matt Brittin shared the details of Google’s standpoint in a blog post on Tuesday (October 1).

He writes that today, in addition to the Economic report, Google is also releasing the AI Opportunity Agenda which is a “series of recommendations for governments to seize the full economic and societal potential of AI.”

This includes four key points, with the first being investing in research and development. “For the EU to truly compete in AI, it needs to make research and development a shared priority, as well as making funding more accessible.

“Without the right incentives to develop and commercialize AI innovation, Europe is stifling its talent and its chances of launching more home-grown tech unicorns,” said Brittin.

Secondly, Google says building infrastructure to support innovation is needed as “AI breakthroughs are only possible with the right high-performance computing technologies and data centers – and the renewable energy to support them.”

With this, they say the EU will need to allocate more funding to finance the necessary infrastructure while incentivizing the private sector to do the same.

Thirdly, the technology giant suggests that technological growth will not be effective if people are left behind, calling for an improvement of skills and training programs.

The final recommendation is the promotion of widespread adoption, with collaboration suggested between EU policymakers, AI developers and businesses.

“Moving from the regulatory-first approach can help to unlock the opportunity of AI,” writes the author as he says Europe is “well-positioned to seize this moment.”

Featured Image: via Midjourney

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